Question 1

Market demand is given as QD = 140 - 5P.Market supply is given as QS = 2P.If price increases from $25 to $27,what is the price elasticity of demand?

Accepted Answer

A)  0.013 
B)  0.13 
C)  1.3 
D)  13.0 
A)  0.013 
B)  0.13 
C)  1.3 
D)  13.0

Question 2

If Francis receives an increase in his pay,what would we expect?

Accepted Answer

A)  Francis's demand for each good he purchases to remain unchanged 
B)  Francis's demand for normal goods to decrease 
C)  Francis's demand for luxury goods to increase 
D)  Francis's demand for inferior goods to increase 
A)  Francis's demand for each good he purchases to remain unchanged 
B)  Francis's demand for normal goods to decrease 
C)  Francis's demand for luxury goods to increase 
D)  Francis's demand for inferior goods to increase

Question 3

Which of the following is NOT a characteristic of a perfectly competitive market?

Accepted Answer

A)  similar products 
B)  numerous sellers 
C)  market power 
D)  numerous buyers 
A)  similar products 
B)  numerous sellers 
C)  market power 
D)  numerous buyers

Question 4

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up,the price of jelly (a complementary good)increased,fewer firms decided to produce peanut butter,and health officials announced that eating peanut butter was bad for you?

Accepted Answer

A)  price will fall and the effect on quantity is ambiguous 
B)  price will rise and the effect on quantity is ambiguous 
C)  quantity will fall and the effect on price is ambiguous 
D)  quantity will rise and the effect on price is ambiguous 
A)  price will fall and the effect on quantity is ambiguous 
B)  price will rise and the effect on quantity is ambiguous 
C)  quantity will fall and the effect on price is ambiguous 
D)  quantity will rise and the effect on price is ambiguous

Question 5

Holding all else constant,what will result from a higher price for ski-lift tickets?

Accepted Answer

A)  increased number of skiers 
B)  decreased supply of ski resorts 
C)  decreased demand for other winter recreational activities 
D)  decreased ski sales 
A)  increased number of skiers 
B)  decreased supply of ski resorts 
C)  decreased demand for other winter recreational activities 
D)  decreased ski sales

Question 6

What is the law of demand?

Accepted Answer

A)  When the price of a good falls,buyers respond by purchasing more. 
B)  When income levels increase,buyers respond by purchasing more. 
C)  When buyers' tastes for the good increase,they purchase more of the good. 
D)  When the price of a good or service rises,buyers respond by purchasing more. 
A)  When the price of a good falls,buyers respond by purchasing more. 
B)  When income levels increase,buyers respond by purchasing more. 
C)  When buyers' tastes for the good increase,they purchase more of the good. 
D)  When the price of a good or service rises,buyers respond by purchasing more.

Question 7

Market demand is given as QD = 200 - 3P.Market supply is given as QS = P + 10.If price increases from $10 to $15,what is the price elasticity of demand?

Accepted Answer

A)  0.2 
B)  0.7 
C)  1.3 
D)  1.7 
A)  0.2 
B)  0.7 
C)  1.3 
D)  1.7

Question 8

You love.You hear on the news that 50% of the world's banana crop has been wiped out because of a virus,which will cause the price to double by the end of the year.What happens as a result?

Accepted Answer

A)  Your demand for bananas will increase at the end of the year. 
B)  Your demand for bananas increases today. 
C)  Your demand for bananas falls as you look for a substitute good. 
D)  Your demand for bananas falls because the price increases today. 
A)  Your demand for bananas will increase at the end of the year. 
B)  Your demand for bananas increases today. 
C)  Your demand for bananas falls as you look for a substitute good. 
D)  Your demand for bananas falls because the price increases today.

Question 9

What are the roles of buyers and sellers in a perfectly competitive market?

Accepted Answer

A)  Buyers determine supply and sellers determine demand. 
B)  Buyers determine demand and sellers determine supply. 
C)  Buyers and sellers as one group determine supply. 
D)  Buyers and sellers as one group determine demand. 
A)  Buyers determine supply and sellers determine demand. 
B)  Buyers determine demand and sellers determine supply. 
C)  Buyers and sellers as one group determine supply. 
D)  Buyers and sellers as one group determine demand.

Question 10

What is an example of a perfectly competitive market?

Accepted Answer

A)  cable TV market 
B)  soybean market 
C)  tablet market 
D)  running shoe market 
A)  cable TV market 
B)  soybean market 
C)  tablet market 
D)  running shoe market

Question 11

Which of the following demonstrates the law of demand?

Accepted Answer

A)  Jon buys more pretzels at $1.50 each since he got a $1 raise at work. 
B)  Melissa buys fewer muffins at $0.75 each than at $1 each. 
C)  Johan buys more burgers at $2 each than at $4 each. 
D)  Kendra buys fewer milk chocolate bars at $0.60 each since the price of white chocolate bars fell to $0.50 each. 
A)  Jon buys more pretzels at $1.50 each since he got a $1 raise at work. 
B)  Melissa buys fewer muffins at $0.75 each than at $1 each. 
C)  Johan buys more burgers at $2 each than at $4 each. 
D)  Kendra buys fewer milk chocolate bars at $0.60 each since the price of white chocolate bars fell to $0.50 each.

Question 12

What will happen to the demand curve for ice cream in a very hot summer in Guelph?

Accepted Answer

A)  It will shift to the left. 
B)  It will shift to the right. 
C)  It will remain stable but we would move down the curve. 
D)  It will remain stable but we would move up the curve. 
A)  It will shift to the left. 
B)  It will shift to the right. 
C)  It will remain stable but we would move down the curve. 
D)  It will remain stable but we would move up the curve.

Question 13

If the demand for a good falls when income falls,the good is called an inferior good.

Accepted Answer

A) True 
 B)False

Question 14

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $50 to $55,what is the price elasticity of demand?

Accepted Answer

A)  0 
B)  0.1 
C)  1.0 
D)  2.2 
A)  0 
B)  0.1 
C)  1.0 
D)  2.2

Question 15

Which best describes the relationship shown by a demand table?

Accepted Answer

A)  the price of a good and the quantity supplied 
B)  income and the quantity of the good demanded 
C)  the price of a good and the quantity buyers are willing and able to purchase 
D)  the number of buyers and the quantity demanded 
A)  the price of a good and the quantity supplied 
B)  income and the quantity of the good demanded 
C)  the price of a good and the quantity buyers are willing and able to purchase 
D)  the number of buyers and the quantity demanded

Question 16

Who or what allocates an economy's scarce resources?

Accepted Answer

A)  economic planners 
B)  producers who use resources 
C)  prices for resources 
D)  government regulation of scarce resources 
A)  economic planners 
B)  producers who use resources 
C)  prices for resources 
D)  government regulation of scarce resources

Question 17

Figure 4-10  
-Refer to the Figure 4-10.What is the movement from point B to point A on the graph called?

Accepted Answer

A)  a decrease in supply 
B)  an increase in supply 
C)  an increase in the quantity supplied 
D)  a decrease in the quantity supplied 
A)  a decrease in supply 
B)  an increase in supply 
C)  an increase in the quantity supplied 
D)  a decrease in the quantity supplied

Question 18

Market demand is given as QD = 100 - P.Market supply is given as QS = 4P.If price increases from $70 to $74,what is the price elasticity of demand?

Accepted Answer

A)  0.4 
B)  0.7 
C)  2.57 
D)  3.5 
A)  0.4 
B)  0.7 
C)  2.57 
D)  3.5

Question 19

To find the market demand for a product,how are individual demand curves summed?

Accepted Answer

A)  vertically 
B)  diagonally 
C)  horizontally 
D)  by averaging 
A)  vertically 
B)  diagonally 
C)  horizontally 
D)  by averaging

Question 20

What does the law of demand imply?

Accepted Answer

A)  price and quantity supplied are inversely related 
B)  price and quantity demanded are inversely related 
C)  price and quantity demanded are positively related 
D)  price and quantity supplied are positively related 
A)  price and quantity supplied are inversely related 
B)  price and quantity demanded are inversely related 
C)  price and quantity demanded are positively related 
D)  price and quantity supplied are positively related

Market demand is given as QD = 140 - 5P.Market supply is given as QS = 2P.If price increases from $25 to $27,what is the price elasticity of demand?

If Francis receives an increase in his pay,what would we expect?

Which of the following is NOT a characteristic of a perfectly competitive market?

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up,the price of jelly (a complementary good)increased,fewer firms decided to produce peanut butter,and health officials announced that eating peanut butter was bad for you?

Holding all else constant,what will result from a higher price for ski-lift tickets?

What is the law of demand?

Market demand is given as QD = 200 - 3P.Market supply is given as QS = P + 10.If price increases from $10 to $15,what is the price elasticity of demand?

You love.You hear on the news that 50% of the world's banana crop has been wiped out because of a virus,which will cause the price to double by the end of the year.What happens as a result?

What are the roles of buyers and sellers in a perfectly competitive market?

What is an example of a perfectly competitive market?

Which of the following demonstrates the law of demand?

What will happen to the demand curve for ice cream in a very hot summer in Guelph?

If the demand for a good falls when income falls,the good is called an inferior good.

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $50 to $55,what is the price elasticity of demand?

Which best describes the relationship shown by a demand table?

Who or what allocates an economy's scarce resources?

Figure 4-10 -Refer to the Figure 4-10.What is the movement from point B to point A on the graph called?

Market demand is given as QD = 100 - P.Market supply is given as QS = 4P.If price increases from $70 to $74,what is the price elasticity of demand?

To find the market demand for a product,how are individual demand curves summed?

What does the law of demand imply?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 4: The Market Forces of Supply and Demand

Market demand is given as QD = 140 - 5P.Market supply is given as QS = 2P.If price increases from $25 to $27,what is the price elasticity of demand?

If Francis receives an increase in his pay,what would we expect?

Which of the following is NOT a characteristic of a perfectly competitive market?

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up,the price of jelly (a complementary good)increased,fewer firms decided to produce peanut butter,and health officials announced that eating peanut butter was bad for you?

Holding all else constant,what will result from a higher price for ski-lift tickets?

What is the law of demand?

Market demand is given as QD = 200 - 3P.Market supply is given as QS = P + 10.If price increases from $10 to $15,what is the price elasticity of demand?

You love.You hear on the news that 50% of the world's banana crop has been wiped out because of a virus,which will cause the price to double by the end of the year.What happens as a result?

What are the roles of buyers and sellers in a perfectly competitive market?

What is an example of a perfectly competitive market?

Which of the following demonstrates the law of demand?

What will happen to the demand curve for ice cream in a very hot summer in Guelph?

If the demand for a good falls when income falls,the good is called an inferior good.

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $50 to $55,what is the price elasticity of demand?

Which best describes the relationship shown by a demand table?

Who or what allocates an economy's scarce resources?

Figure 4-10 -Refer to the Figure 4-10.What is the movement from point B to point A on the graph called?

Market demand is given as QD = 100 - P.Market supply is given as QS = 4P.If price increases from $70 to $74,what is the price elasticity of demand?

To find the market demand for a product,how are individual demand curves summed?

What does the law of demand imply?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters